Valley Rural Electric Cooperative, Inc.

10700 Fairgrounds RoadP.O. Box 477

Huntingdon, PA 16652-0477814/643-26501-800-432-0680

www.valleyrec.com

BO A R D O F DI REC T O RS

James StaufferChairman

Leroy BarnesVice ChairmanPREA Director

Kevin StatesSecretary

Cindy BigelowTreasurer

Robert HolmesAllegheny Director

Corey BrumbaughMervin Brumbaugh

Gregory HenryLinda McMath

C OR P O RA T E O FF IC E H OU R S

Monday - Friday7 a.m. - 5:30 p.m.

H UN T I N GDO N /M A R TI N SBU R G/SH A D E GA POF FI CE H O UR S

Monday - Thursday7 a.m. - 5:30 p.m.

O U TA GES & EM ERGEN C I ES

1-800-432-0680

UNLESS you work at anelectric distribution co-op,you probably don’t givemuch thought to thefinancing of improvementsto the system that deliversyour electricity. Yet the wayco-ops fund capital projectsis one more way our mem-bers differ from the cus-tomers of private or munic-ipal power companies.When electric co-ops were

being established in the late 1930s to servesome of the most sparsely populatedregions of America, they needed money forconstruction. Much of that funding camein the form of government loans — initiallyfrom the Rural Electrification Administra-tion (REA) and then its successor, RuralUtilities Service (RUS). Federal assistancehas helped co-ops grow. Indeed, theNational Rural Electric Cooperative Associ-ation (NRECA) reports that, as of year-end2012, electric co-ops had invested morethan $150 billion to build critical infrastruc-ture spanning 75 percent of the UnitedStates while keeping rates affordable.Of course, federal assistance for electric

utilities is not unique to co-ops. Privatepower companies benefit from tax breaksand municipal electric systems are able toissue tax-exempt bonds. However, co-ops(and, in turn, you) are assisted throughguaranteed loan funding that is repaid. Let’s look at a comparison of electric

utilities and subsidies compiled recentlyby NRECA:k Co-ops serve an average of 7.4 con-sumers, with annual revenue ofapproximately $15,000, per mile ofline. Based on current interest rates,RUS loans (with an average interestrate of 4.57 percent, compared to thegovernment’s cost of borrowing at 3.91 percent) actually make money forthe U.S. Treasury ― $163 million com-

bined from 2009 to 2011, more than$274 million during fiscal year 2012and a projected $369 million in 2013.

kPrivate power companies average 34 cus-tomers and collect $75,000 in revenueper mile of line. In virtually every case,they charge electric rates that includeamounts for presumed federal tax liabili-ties. However, available tax breaks allowinvestor-owned utilities to retain most ofthe taxes collected, roughly $124 billionto date. At a cost to the government of$4.8 billion in 2011 (the last year avail-able), this federal subsidy is about $47 per customer.

k Publicly owned municipal electric sys-tems average 48 consumers and collect$113,000 in revenue per mile of line.The federal government loses revenuewhen municipals issue tax-exemptbonds because interest paid to bondowners is not taxed. The cost of thissubsidy in 2003 (the last year available)was $909 million, or $55 per consumer.U.S. co-ops generate roughly 5 per-

cent of U.S. electricity capacity, distribute10 percent of all kilowatt-hours sold,employ more than 70,000, and pay morethan $1.4 billion annually in state andlocal taxes. Federal loans have allowedelectric cooperatives to keep rates afford-able. That’s especially significant becausehousehold incomes in co-op service ter-ritories are 11 percent lower than thenational average, and one person in sixserved by a co-op lives in poverty.NRECA anticipates the nation’s elec-

tric co-ops will need about $6 billion incapital annually over the next five years toupgrade aging infrastructure and to con-nect new consumers. The unique, long-standing relationship between electriccooperatives and the federal governmentwill continue to ensure that all Ameri-cans, no matter where they may live, haveaccess to a reliable electric system able tomeet 21st-century demands.l

A U G U S T 2 0 1 3 • P E N N L I N E S 14a

One of 14 electriccooperatives servingPennsylvania and

New Jersey

COOPERATIVEconnection

F R O M T H E P R E S I D E N T & C E O

Co-ops pay their own way, with interestValley

Rural Electric Cooperative, Inc.

by Wayne MillerPresident & CEO

band, school plays and prom commit-tee. An honor student, she alsoparticipates in Girl Scouts and inchurch activities. Laura isinterested in sales and plansto major in retail market-ing. A self-describedentrepreneur, sheenjoys selling items shehas crocheted.

Austin plays foot-ball and baseball,and is vice presi-dent of the juniorclass. He has servedas treasurer of hisschool’s FutureFarmers of Americachapter for two yearsand has shown pigs,lambs, dairy, and beeffor 4-H for eight years.He enjoys working onthe family farm andweightlifting.

Nathan is one of severalmusically talented students.He is involved in marchingand concert band. Heserves as class treasurer,and is an honor society stu-dent. He is active in 4-H,Ski Club, and church activi-ties, and enjoys huntingand riding motorcycles.Huntingdon Area High

School had two juniors onYouth Tour 2013. They areLance Chambers of Hesston,son of Jim and Janet Cham-bers, and Natalie Romano ofHuntingdon, daughter of Susanand John Romano. Lance is interested in engineer-

ing and is working on his EagleScout project. He plays football, is on

the track team, and has been involvedwith his school yearbook and prom com-

mittees. A National Honor Society student,Lance has participated in his school’s rocketcompetition for gifted students, and enjoys

Valley Rural Electric Cooperative, Inc.

ABOVE: Nathan, Austin, Abby, Natalie, Caitlyn, Noah and Lancepause on the steps of the Lincoln Memorial. (Submitted photos)

14b P E N N L I N E S • A U G U S T 2 0 1 3

VALLEY RURAL ELECTRIC

COOPERATIVE sponsored 14 highschool students on the 2013 Rural ElectricYouth Tour to Washington, D.C., June 16-21. Theteens, from eight schools in four counties, spent theirtime in the capital meeting legislators and learning aboutthe cooperative business model.

They joined nearly 1,600 other juniors and seniors fromelectric cooperatives all over the country — 92 from co-ops inPennsylvania and New Jersey — who participated in the event.

The all-expenses-paid trip was packed with activities, includingmeetings with lawmakers and rural electric leaders, visits to historicmonuments throughout Washington, D.C., and tours of the Smithson-ian museums, Holocaust Museum, National Zoo and Arlington Ceme-tery. The agenda also included a cruise on the Potomac River, a parade atthe Iwo Jima Memorial and a theater production at the Kennedy Center.“My favorite part of Youth Tour was the opportunity to meet kids

from all over the United States of America,” says Abigail Daniels, a YouthTour student from Bedford. “The friendships I formed and things Ilearned in this one week will never be forgotten.” Youth Tour participants are dependents of co-op members. During the

trip, they learn about the principles that govern rural electric and othercooperatives. Recommended by guidance counselors at their respectiveschools, the students were selected for the trip on the basis of academicachievement, leadership in extracurricular activities and community service.“I had an amazing time at Youth Tour; I made many new friends,” says

Laura Allison, a student from Williamsburg.Three students from Williamsburg High School took part in the trip.

They are: Laura, the daughter of Mark and Linda Allison; AustinMcMonagle, son of Daniel and Tracy McMonagle; and Nathan Bishop,son of David and Mindy Bishop. All are from Williamsburg.Laura’s school activities include

Youth Tour ’13 exploresnation’s capital

B y D o u g R o l e s

Director of Member Services

is president of his class and has participated in five school musicals.An honor society student, he is a member of the track team andlikes to hunt. He is interested in electrical engineering.

Abigail Daniels, the daughter of Joe and Larae Daniels,of Bedford, attends Calvary Christian Academy in Cre-saptown, Md. She had the lead role in the school’sChristmas play and has appeared in church plays aswell. Her classmates have elected her class vice pres-ident. She started a school art club. A soccer player,

Abby, as her friends call her, enjoys photography, knit-ting and baking.

Caitlyn Edgell, Hollidaysburg Area High School, is the daughterof John and Penne Edgell of Hollidaysburg. She plans to major inpolitical science and then get her law degree. She was selected bestprosecuting attorney of the high school’s mock trial team and hastwice won the school’s speech contest. Caitlyn was chosen to repre-sent Valley Rural Electric Cooperative (REC) in Pennsylvania’s YouthLeadership Council competition during Youth Tour. Her activitiesinclude softball, math league and Model U.N. Cheyanne Brumbaugh graduated from Calvary Christian Acad-

emy, Huntingdon, in June. Cheyanne is the daughter of Corey andSandy Brumbaugh of Three Springs. She plans to become an attorneyand is taking lessons to receive her private pilot’s license. School activi-ties included choir, soccer and writing for The Daily News Press Club.

She also volunteers at the Shirley Home for the Aged.Cheyanne, the 2012-13 fire queen for ThreeSprings Volunteer Fire Co., was also chosento represent Valley REC in the leadershipcompetition.

Three Youth Tour students are fromSouthern Huntingdon County HighSchool. They are Hannah King of ShadeGap, daughter of Ron and Wendy King;Kelsi Newman of Mapleton, daughter ofBrock and Shanna Newman; and TaylorSchmidt, also of Mapleton, daughter ofWilliam and Jolene Schmidt.Hannah is an honor society student who

has participated in concert band for six yearsand serves as class vice president. She hasplayed high school basketball and softball,

helping her softball team into the playoffs thisyear. She is active with her church youth group

and enjoys summer softball and reading.Like many of her tour mates, Kelsi enjoys music. She

is involved in all of her school’s band and chorus programs,including jazz band, and she is the marching band’s drum major.

Kelsi enjoys traveling, shopping and target shooting. She hopes to have acareer in education.Taylor hopes to combine music and education by working as a

choral director. An honor society student, she has participated in schoolmusicals for two years, and in county and district chorus events. She isactive in her church and also enjoys playing softball.For more information on the Rural Electric Youth Tour, contact the

member services department at Valley REC at 814/643-2650, toll-free800/432-0680 or email memberservices@valleyrec.com.l

Valley Rural Electric Cooperative, Inc.

A U G U S T 2 0 1 3 • P E N N L I N E S 14c

ABOVE: Students sponsored by Valley REC on Youth Tour 2013 are, from left:Noah Hykes, Lance Chambers, Nathan Bishop, Caitlyn Edgell, AustinMcMonagle, Cheyanne Brumbaugh, Alicia Baker, Tara Sheetz, Abigail Daniels,Hannah King, Natalie Romano, Taylor Schmidt, Kelsi Newman and LauraAllison. Youth Tour included a night of dancing, a trip to meet legislators andsightseeing. (Submitted photos)

Washing-ton, D.C., as wellas the Veterans Dayparade in New York. Taraplays guitar and sings, and has sev-eral public performances to her credit.One student from Southern Fulton Junior/Senior High School went on

Youth Tour. Noah Hykes of Needmore, the son of Mac and Jennifer Miller,

snowboardingand hiking.Natalie is considering a career in

the environmental sciences and is a mem-ber of student council and Key Club. She is on

the volleyball and track teams. An honor societystudent, she has volunteered with four Red Cross blooddrives and with her church’s fish dinners for 10 years.

Two of the students are from Mount Union AreaHigh School. They are Alicia Baker of Huntingdon,daughter of Richard and Jody Baker, and Tara Sheetzof Huntingdon, daughter of Brook Sheetz.

Alicia is interested in health sciences and cansee herself working as a therapist. She is treas-urer of student council and in 2010, marchedin the New York City Veterans Day Paradewith the school band. Alicia is on the trackteam, plays summer softball and hascompleted Safe Sitter certification.

One of two 2013 graduates whowent on the trip, Tara plans to becomea physical therapy assistant. She wasactive in the school band and cho-rus, and participated in the 100thBoy Scouts parade in

14d P E N N L I N E S • A U G U S T 2 0 1 3

Valley Rural Electric Cooperative, Inc.

Valley Rural Electric Cooperative awards25 $1,000 scholarships to local students

VALLEYRural Electric Cooperativerecently awarded 25 $1,000 scholarships tohigh school seniors, as well as studentsalready enrolled in post-secondary institu-tions.The co-op’s Brighter Future Scholarship

Program was established in 2010 to assisteligible students who are coop-erative members or theirdependents. Selection criteriainclude academic achievement,financial need, school activitiesand community service.The money to finance this

initiative comes from unclaimed capitalcredits refunds that previously had to beturned over to the state treasury. But now,thanks to the efforts of the cooperative’spolitical advocates, these resources can bekept in co-op communities and used toassist consumers facing financial hard-ships, and to fund educational scholar-ships.The following 21 high school seniors

were awarded scholarships from ValleyREC:

Bedford County:Tussey MountainHigh School — Erin Curfman of Cassville,daughter of Clair and Susan Curfman,attending Clarion University of Pennsylva-nia.

Blair County:Altoona Area HighSchool — Dylan Eckels of Hollidaysburg,son of Lisa Shilaos and Edward Eckels,attending Drexel University; Central HighSchool — Taylor McKnight of RoaringSpring, daughter of Melissa and CurtMcKnight, attending Saint Francis Univer-sity; and Megan Witkovsky, also of Roar-ing Spring, daughter of Paul and JulieWitkovsky, attending Indiana Universityof Pennsylvania; Claysburg-Kimmel HighSchool — Kala Brumbaugh of Claysburg,daughter of Lisa Iachini, attending TheUniversity of Alabama; HollidaysburgArea Senior High School — TaylorMcCready of Duncansville, daughter ofDiane Mobley and Don McCready, attend-ing Bucknell University; and Nur Cardakliof Hollidaysburg, daughter of Kubilay andU. Fusun Cardakli, attending Duke Uni-

versity; Williamsburg Junior/Senior HighSchool — Emily Shaw of Williamsburg,daughter of Steve Shaw and Karyn Shaw,attending Penn State; and CassondraKensinger, also of Williamsburg, daughterof Stanley and Patricia Kensinger, attend-ing California University of Pennsylvania.Fulton County: Southern Fulton Jun-

ior/Senior High School — Taelor Mortonof Needmore, daughter of L. Allen and

Kelly Morton, attending Penn StateAltoona.

Huntingdon County:Huntingdon AreaHigh School — Kayla Handy of Mill Creek,daughter of Tracey Handy and MikeHandy, attending Clarion University; andJacob Finkle, also of Mill Creek, son ofBradley and Cheryl Finkle, attending Juni-ata College; Juniata Valley High School —Taylor Thompson of Petersburg, daughterof John and Paula Thompson, attendingDuBois Business College; and AllisonMiller, also of Petersburg, daughter ofMark and Tracey Miller, attending PennState Altoona; Mount Union Area HighSchool — Bryan Wenzel of Shirleysburg,son of Kurt and Anna Mary Wenzel,attending Stevens Institute of Technology;and Samantha Bliss of Huntingdon, daugh-ter of Timothy and Jacquita Bliss, attendingRensselaer Polytechnic Institute; SouthernHuntingdon County High School —Makayla Hawbaker of Shade Gap, daugh-ter of Michael and Michele Hawbaker,attending Juniata College; and WilliamShee of Calvin, son of Robert and DianeShee, attending Saint Francis University.

Juniata County: Juniata High School —Kelsey Beasom of Mifflin, daughter ofGary and Christina Beasom, attendingSouth Hills School of Business & Technol-ogy.

Mifflin County:Mifflin County HighSchool — Makayla Pearce of Lewistown,daughter of Tim and Paula Pearce, attend-ing Penn State Altoona.In addition, Amy Lingenfelter of Clays-

burg, daughter of Erik and Linda Lingen-felter, a home-schooled student planningto attend Pensacola Christian College, wasselected to receive a Brighter Future Schol-arship.Four students currently enrolled in

post-secondary institutions were alsoawarded scholarships from Valley REC forthe 2013-14 academic year. They include:Stacy Locke of Shade Gap, daughter of

Steven Locke and MichelleBurkholder, a 2006 graduate ofSouthern Huntingdon CountyHigh School attending thePennsylvania College ofOptometry at Salus University;Byron Brown of Huntingdon,

son of Shelly and James Brown, a 2011graduate of the Susquehanna ValleyHomeschool Diploma Program attendingLiberty University; Justin Mellott of Need-more, son of Andy and Kristi Mellott, a2012 graduate of Southern FultonJunior/Senior High School attendingMount Aloysius College; and Guy Mauroof East Freedom, son of Guy and RoseMauro, a 2012 graduate of Claysburg-Kim-mel High School attending Penn StateAltoona.For more information about Valley

Rural Electric Cooperative’s BrighterFuture Scholarship Program, call 800/432-0680 or visit www.valleyrec.com and fol-low the Programs and Services link to theScholarships section.l

B y L u a n n e H . E c k e n r o d e

Vice President, Consumer Services & Public Relations